Accounting Policies of Spenta International Ltd. Company

Mar 31, 2015

(a) Basic of Preparation of Financial Statements

The financial statements have been prepared to comply in all material
respects with the mandatory Accounting Standards issued by the
Institute of Chartered Accountants of India and the relevant provisions
of the Companies Act, 2013. The financial statements have been prepared
under the historical cost convention and accrual basis. The accounting
policies have been consistently applied by the Company except for the
changes in accounting policy discussed more fully below, are consistent
with those used in the previous year.

(b) Use of Estimates

The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period end. Although these estimates are based upon management's best
knowledge of current events and actions, actual results could differ
from these estimates.

(c) Fixed Assets

Fixed Assets are stated at cost of acquisition less accumulated
depreciation, (net of Cenvat / Value Added Tax, wherever applicable).
Cost is inclusive of freight, non cenvatable duties, levies & any
directly attributable cost of bringing the assets to their working
condition for intended use.

(d) Capital Work-in-Progress

Borrowing costs (net of interest earned on temporary investments of
such borrowings) if specifically attributable to qualifying assets, are
capitalized to such assets and in general, weighted average interest
cost is capitalized to the qualifying assets.

(e) Depreciation

Depreciation on Fixed Assets has been provided on Straight - Line
Method (SLM) in accordance with the rates prescribed under Schedule II
of the Companies Act, 2013 over the life of the assets. However company
has not calculated useful of the asset.

(f) Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at exchange
rate prevailing at the date of the transaction or that approximates the
actual rate at the date of the transaction. Foreign Currency Assets and
Liabilities are restated at the rate prevailing at the year end or at
the forward rate where forward cover has been taken. In respect of
transactions covered by forward exchange contracts, the difference
between contract rate and the rate on the date of the transaction is
recognized as income or expense in the Profit and loss account over the
life of the contract.

(g) Inventories

Items of inventories are measured at lower of cost or net realizable
value after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and other costs
incurred in bringing them to their respective present location and
condition. Raw material comprises of Yarn and packing material at cost.
Wastage is valued at net realizable value. Cost of Raw material,
finished goods. Spares and Consumables are determined on First in First
out basis.

(h) Investments

Current investments and non-current investments are stated at cost.
Provision for diminution in the value of the long term investments is
made only if such a decline is other than temporary.

(i) Revenue Recognition

Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. Domestic Sales are booked at net off Returns &
exclude Sales Tax / Value Added Tax.

(j) Employee Benefits

Employee benefits in the form of Provident Fund are a defined
contribution scheme and the contributions are charged to the Profit and
Loss Account of the year when the contributions to the respective funds
are due. Short-term employee benefits are recognized as an expense at
the undiscounted amount in the profit and loss account of the year in
which the related service is rendered. Liability towards gratuity
benefit has been made on the assumption that such benefits are payable
to employees on termination of their employment and method adopted for
its calculation has been worked by management internally in place of
actuarial valuation method.

(k) Earning Per Shares

In accordance with the Accounting Standard 20 (AS - 20) "the Earning
Per Share" issued by the Institute of Chartered Accountants of India,
basic earning per share is computed using average number of shares
outstanding during the year.

(l) Provision for Current Tax & Deferred Tax

Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income- tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax and laws that are
enacted or substantively enacted as on the balance sheet date. The
deferred tax liability is recognized and carried forward only to the
extent that there is virtual certainty that the liability will be
realized in future.

(m) Provision, Contingent Liabilities & Contingent Assets

Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
vents and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
financial statement.

(n) Capital Subsidy

Subsidy given by Government is under State Government Subsidy Scheme
for setting up Industrial unit in backward area. As this is only an
incentive and not for acquiring any specific Capital Asset, the same is
treated as Capital Reserve.

Mar 31, 2014

(a) Basic of Preparation of Financial Statements

The financial statements have been prepared to comply in all material
respects with the mandatory Accounting Standards issued by the
Institute of Chartered Accountants of India and the relevant provisions
of the Companies Act, 1956. The financial statements have been prepared
under the historical cost convention and accrual basis. The accounting
policies have been consistently applied by the Company except for the
changes in accounting policy discussed more fully below, a re
consistent with those used in the previous year.

(b) Use of Estimates

The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period end. Although these estimates are based upon management''s best
knowledge of current events and actions, actual results cou Id differ
from these estimates.

(c) Fixed Assets

Fixed Assets are stated at cost of acquisition less accu mutated
depreciation, (net of Cenvat / Value Added Tax, wherever applicable).
Cost is inclusive of freight, non cenvatable duties, levies & any
directly attributable cost of bringing the assets to their working
condition for intended use.

(d) Capital Work-in-Progress .

Borrowing costs (net of interest earned on temporary investments of
such borrowings) if specifically attributable to qualifying assets, are
capitalized to such assets and in general, weighted average interest
cost is capitalized to the qualifying assets.

(e) Depreciation

Depreciation on Fixed Assets has been provided on Straight - Line
Method (SLM) in accordance with the rates and in manner prescribed
under Sched ule XIV of the Companies Act, 1956 over thei r useful life,

(f) Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at exchange
rate prevailing at the date of the transaction or that approximates the
actual rate at the date of the transaction. Foreign Currency Assets and
Liabilities are restated at the rate prevailing at the year end or at
the forward rate where forward cover has been taken. In respect of
transactions covered by forward exchange contracts, the difference
between contract rate and the rate on the date of the transaction is
recognized as income or expense in the Profit and loss account over the
I ife of the contract.

(g) Inventories

Items of inventories are measu red at lower of cost or net realiza ble
value after providi ng for obsolescence, if a ny. Cost of inventories
comprises of cost of purchase, cost of conversion and other costs
incurred in bringing them to their respective present location and
condition. Raw material comprises of Yarn and packing material at cost.
Wastage is valued at net realizable value. Cost of Raw material,
finished goods. Spares and Consumables are determined on First in
Firstout basis.

(h) Investments

Current investments and non-current investments are stated at cost.
Provision for diminution in the value of the long term investments is
made only if such a decline is other than temporary.

(i) Revenue Recognition

Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. Domestic Sales are bookedat net off Returns &
exclude Sales Tax/Value Added Tax.

(]) Employee Benefits ''

Employee benefits In the form of Provident Fund are a defined
contribution scheme and the contributions are charged to the Profit and
Loss Account of the yearwhen the contributions to the respective funds
are due. Short-term employee benefits are recognized as an expense at
the undiscounted amount in the profit and loss account of the year in
which the related service is rendered. Liability towards gratuity
benefit has been made on the assumption that such benefits are payable
to employees on termination of their employment and method adopted for
its calculation has been worked by management internally in place of
actuarial valuation method.

(k) Earning Per Shares

In accordance with the Accounting Standard 20 (AS - 20) "the Earning
Per Share" issued by the Institute of Chartered Accountants of India,
basic earning per share is computed using average number of shares
outstanding during the year.

(l) ProvislonforCurrentTax&DeferredTax

Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income- tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax and laws that are
enacted or substantively enacted as on the balance sheet date. The
deferred tax liability is recognized and carried forward only to the
extent that there is virtual certainty that the liability will be
realized in future.

(m) Provision, Contingent Liabilities & Contingent Assets

Provisions involving substantial degree of esti mation i n measurement
are recognized when there is a present obligation as a result of past
vents and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
financial statement.

(n) Capital Subsidy

Subsidy given by Government is under State Government Subsidy Scheme
for setting up Industrial unit in backward area. As this is only an
incentive and not foracquiringany specific Capital Asset, the same is
treated as Capital Reserve.

B) Terms / rights attached to equity shares

The Company has only one class of equity shares haying a par value of
Rs. 10/-. The equity shares have rights, preferences & restrictions
which are i n accordance provisions of law, in particular the companies
Act, 1956.

Provision for Gratuity is made on the assumption that such benefits are
payable on termination of employment and method adopted for its
calculation has been worked on Actuarial Valuation basis.

Details of Security: Working Capital loan is taken from DCB Bank & same
is 1) Secured by hypothecation of inventories and book debts. 2)
Equitable mortgage of the factory land & building of plot no. 13 to 16
standing in the name of the Company at Palghar. 3) Personal Guarantees
of Executive/ Promoter Directors of the Company.

Dues to micro & small enterprises have been determined to the extent
such parties have been identified on the basis of intimation received
from the "suppliers" regarding their status under the Micro, small &
Medium Enterprises Development Act, 2006.

Mar 31, 2013

(a) Basic of Preparation of Financial Statements

The financial statements have been prepared to comply in all material
respects with the mandatory Accounting Standards issued by the
Institute of Chartered Accountants of India and the relevant provisions
of the Companies Act, 1956. The financial statements have been prepared
under the historical cost convention and accrual basis, The accounting
policies have been consistently applied by the Company except for the
changes in accounting policy discussed more fully below, are consistent
with those used in the previous year.

(b) Use of Estimates

The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period end. Although these estimates are based upon management''s best
knowledge of current events and actions, actual results could differ
from these estimates.

(C) Share Capital

The paid up Share Capital included Rs.40,500/- in Previous year on
account of forfeited shares which is transferred to reserves in current
year.

(d) Fixed Assets

Fixed Assets are stated at cost of acquisition less accumulated
depreciation, (net of Cenvat / Value Added Tax , wherever applicable).
Cost is inclusive of freight, non cenvatable duties, levies & any
directly attributable cost of bringing the assets to their working
condition for intended use.

(e) Depreciation

Depreciation on Fixed Assets has been provided on Straight - Line
Method (SLM) in accordance with the rates and in manner prescribed
under Schedule XIV of the Companies Act, 1956 over their useful life.

(f) Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at exchange
rate prevailing at the date of the transaction or that approximates the
actual rate at the date of the transaction. Foreign Currency Assets and
Liabilities are restated at the rate prevailing at the year end or at
the forward rate where forward cover has been taken. In respect of
transactions covered by forward exchange contracts, the difference
between contract rate and the rate on the date of the transaction is
recognized as income or expense in the Profit and loss account over the
life of the contract.

(g) Inventories

Items of inventories are measured at lower of cost or net realizable
value after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and other costs
incurred in bringing them to their respective present location and
condition. Raw material comprises of Yarn and packing material at cost,
Wastage is valued at net realizable value. Cost of Raw material,
finished goods, Spares and Consumables are determined on First in First
out basis.

(h) Investments

Current investments and non current investments are stated at cost.
Provision for diminution in the value of the long term investments is
made only if such a decline is other than temporary.

(i) Revenue Recognition

Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. Domestic Sales are booked at net off Returns &
exclude Sales Tax / Value Added Tax.

(j) Employee Benefits

Employee benefits in the form of Provident Fund are a defined
contribution scheme and the contributions are charged to the Profit and
Loss Account of the year when the contributions to the respective funds
are due. Short-term employee benefits are recognized as an expense at
the undiscounted amount in the profit and loss account of the year in
which the related service is rendered. Liability towards gratuity
benefit has been made on the assumption that such benefits are payable
to employees on termination of their employment and method adopted for
its calculation has been worked by management internally in place of
actuarial valuation method.

(k) Earning Per Shares

In accordance with the Accounting Standard 20 (AS - 20) "the Earning
Per Share" issued by the Institute of Chartered Accountants of India,
basic earning per share is computed using average number of shares
outstanding during the year.

(l) Provision for Current Tax & Deferred Tax

Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax and laws that are
enacted or substantively enacted as on the balance sheet date. The
deferred tax liability is recognized and carried forward only to the
extent that there is virtual certainty that the liability will
liability will be realized in future.

(m) Provision, Contingent Liabilities & Contingent Assets

Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
vents and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
financial statement.

(n) Capital Subsidy

Subsidy given by Government is under State Government Subsidy Scheme
for setting up Industrial unit in backward area. As this is only an
incentive and not for acquiring any specific Capital Asset. The same is
treated as Capital Reserve.

Mar 31, 2012

(a) Basic of Preparation of Financial Statements

The financial statements have been prepared to comply in all material
respects with the mandatory Accounting Standards issued by the
Institute of Chartered Accountants of India and the relevant provisions
of the Companies Act, 1956. The financial statements have been prepared
under the historical cost convention and accrual basis, The accounting
policies have been consistently applied by the Company except for the
changes in accounting policy discussed more fully below, are consistent
with those used in the previous year.

(b) Use of Estimates

The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period end. Although these estimates are based upon management's best
knowledge of current events and actions, actual results could differ
from these estimates.

(c) Share Capital

The paid up Share Capital includes Rs.40,500/- (Previous year
Rs.40,500/-) on account of forfeited shares.

(d) Fixed Assets

Fixed Assets are stated at cost of acquisition less accumulated
depreciation, (net of Cenvat / Value Added Tax , wherever applicable).
Cost is inclusive of freight, non convictable duties, levies & any
directly attributable cost of bringing the assets to their working
condition for intended use.

(e) Depreciation

Depreciation on Fixed Assets has been provided on Straight - Line
Method (SLM) in accordance with the rates and in manner prescribed
under Schedule XIV of the Companies Act, 1956 over their useful life.

(f) Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at exchange
rate prevailing at the date of the transaction or that approximates the
actual rate at the date of the transaction. Foreign Currency Assets and
Liabilities are restated at the rate prevailing at the yearend or at
the forward rate where forward cover has been taken. In respect of
transactions covered by forward exchange contracts, the difference
between contract rate and the rate on the date of the transaction is
recognized as income or expense in the Profit and loss account over the
life of the contract.

(g) Inventories

Items of inventories are measured at lower of cost or net realizable
value after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and other costs
incurred in bringing them to their respective present location and
condition. Raw material comprises of Yarn and packing material at cost,
Wastage is valued at net realizable value. Cost of Raw material,
finished goods, Spares and Consumables are determined on First in First
out basis.

(h) Investments

Current investments and noncurrent investments are stated at cost.
Provision for diminution in the value of the long term investments is
made only if such a decline is other than temporary.

(i) Revenue Recognition

Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. Domestic Sales are booked at net off Returns &
exclude Sales Tax / Value Added Tax.

(j) Employee Benefits

Employee benefits in the form of Provident Fund are a defined
contribution scheme and the contributions are charged to the Profit and
Loss Account of the year when the contributions to the respective funds
are due. Short-term employee benefits are recognized as an expense at
the undiscounted amount in the profit and loss account of the year in
which the related service is rendered. Liability towards gratuity
benefit has been made on the assumption that such benefits are payable
to employees on termination of their employment and method adopted for
its calculation has been worked by management internally in place of
actuarial valuation method.

(k) Earning Per Shares

In accordance with the Accounting Standard 20 (AS - 20) "the Earning
Per Share" issued by the Institute of Chartered Accountants of India,
basic earnings per share is computed using average number of shares
outstanding during the year.

(l) Provision for Current Tax & Deferred Tax

Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax and laws that are
enacted or substantively enacted as on the balance sheet date. The
deferred tax liability is recognized and carried forward only to the
extent that there is virtual certainty that the liability will
liability will be realized in future.

(m) Provision, Contingent Liabilities & Contingent Assets

Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
vents and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
financial statement.

(n) Capital Subsidy

Subsidy given by Government is under State Government Subsidy Scheme
for setting up Industrial unit in backward area. As this is only an
incentive and not for acquiring any specific Capital Asset. The same is
treated as Capital Reserve.

Mar 31, 2010

(a) Basic of Preparation of Financial Statements

The financial statements have been prepared to comply in all material
respects with the mandatory Accounting Standards issued by the
Institute of Chartered Accountants of India and the relevant provisions
of the Companies Act, 1956. The financial statements have been prepared
under the historical cost convention and accrual basis, except in case
of assets for which provision for impairment is made and revaluation is
carried out. The accounting policies have been consistently applied by
the Company and except for the changes in accounting policy discussed
more fully below, are consistent with those used in the previous year.

(b) Use of Estimates

The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period end. Although these estimates are based upon managements best
knowledge of current events and actions, actual results could differ
from these estimates.

(c) Share Capital

The paid up Share Capital includes Rs.40,5007- (Previous year
Rs.40,500/-) on account of forfeited shares.

(d) Fixed Assets

Fixed Assets are stated at cost of acquisition less accumulated
depreciation, (net of Cenvat / Value Added Tax, wherever applicable).
Cost is inclusive of freight, duties, levies & any directly
attributable cost of bringing the assets to their working condition for
intended use.

(e) Depreciation

Depreciation on Fixed Assets has been provided on Straight - Line
Method (SLM) in accordance with the rates and in manner prescribed
under Schedule XIV of the Companies Act, 1956 over their useful life.

(f) Foreign Currency Transactions

Transactions denominated in foreign currencies are recorded at exchange
rate prevailing at the date of the transaction or that approximates the
actual rate at the date of the transaction. Foreign Currency Assets and
Liabilities are restated at the rate prevailing at the year end or at
the forward rate where forward cover has been taken. In respect of
transactions covered by forward exchange contracts, the difference
between contract rate and the rate on the date of the transaction is
recognized as income or expense in the Profit and loss account over the
life of the contract.

(g) Inventories

Items of inventories are measured at lower of cost or net realizable
value after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and other costs
incurred in bringing them to their respective present location and
condition. Raw material comprises of Yarn and packing material at cost,
Wastage is valued at net realizable value. Cost of Raw material,
finished goods, Spares and Consumables are determined on First in First
out basis.

(h) Investments

Current investments are carried at lower of cost or quoted / fair
value, computed category wise. Long Term Investments are stated at
cost. Provision for diminution in the value of the long term
investments is made only if such a decline is other than temporary.

(i) Revenue Recognition

Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.

Domestic Sales: Domestic Sales are booked at net off Returns & exclude
Sales Tax / Value Added Tax. Export Sales: Export Sales are booked at
prevailing foreign exchange rates on the date of the transactions. The
difference in the foreign exchange rate at the time of realization of
such exports proceeds is transferred to Exchange Difference Account.

(j) Employee Benefits

Employee benefits in the form of Provident Fund are a defined
contribution scheme and the contributions are charged to the Profit and
Loss Account of the year when the contributions to the respective funds
are due. Short-term employee benefits are recognized as an expense at
the undiscounted amount in the profit and loss account of the year in
which the related service is rendered. Liability towards gratuity
benefit has been made on the assumption that such benefits are payable
to employees on termination of their employment and method adopted for
its calculation has been worked by management internally in place of
actuarial valuation method.

(k) Provision for Current Tax & Deferred Tax

Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax and laws that are
enacted or substantively enacted as on the balance sheet date. The
deferred tax liability is recognized and carried forward only to the
extent that there is virtual certainty that the liability will
liability will be realized in future.

(l) Earning Per Shares

In accordance with the Accounting Standard 20 (AS - 20) "the Earning
Per Share" issued by the Institute of Chartered Accountants of India,
basic earning per share is computed using average number of shares
outstanding during the year.

(m) Provision, Contingent Liabilities & Contingent Assets

Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
vents and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but ate disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
financial statement.

(n) Capital Subsidy

Subsidy given by Government is under State Government Subsidy Scheme
for setting up Industrial unit in backward area. As this is only an
incentive and not for acquiring any specific Capital Asset. The same is
treated as Capital Reserve.